NACS Association Collaboration in a Complex World 84 th Annual Food Industry Association Executives Convention Novemb

1. NACS Association Collaboration in a Complex World84th Annual Food Industry Association Executives ConventionNovember 8, 2011 Henry Armour, President/CEO

2. Presentation Overview NACS An Organizational Overview Our Value Proposition Our Industry Collaboration in a Complex World Our belief in JFK Top Issues Confronting the Industry Open Dialogue Throughout

3. NACS Overview Founded in 1961…50 Years Old This Year! Mission: Knowledge, Connections & Advocacy 2,400 retail member companies Operating 80,000 stores in the USA Operating 350,000 stores globally Members in 44 countries 2,000 supplier member companies Governed by a diverse retail board of directors 58 staff colleagues Headquartered in Alexandria, VA

4. The NACS Value Proposition • Knowledge • State of the Industry Data (SOI) & Performance Benchmarking (CSX) • Consumer Intercept Research (CTP) • NACS Center for Achieving Foodservice Excellence (NACS Café) • Educational Programs • NACS/Cornell University Executive Leadership Program • NACS Leadership Challenge for Store Supervisors • Over 100 educational workshops and forums • Computer based store-level training modules • Business process improvements/technology standards (PCATS) • Connections • NACS Show • NACS Global Forum • NACS Leadership Forum • NACStech Show • Advocacy • Government Relations • Media Relations

5. Key Industry Facts! Part of the everyday life of the American consumer 146,000 stores 90,000 single store operators 160 million transactions/day 82% of motor fuels sold in the USA (#1) 75% of tobacco products (#1) 90% of lottery products (#1) 56% of beer (#1) #2 in salty snacks, candy & package beverage 1.6 million employees In virtually every community of America The store is increasingly relevant 68% of facility gross profit dollars 28% of inside gross profit dollars is foodservice

6. Weathering the Great Recession! Source: NACS State of the Industry Database powered by CSX

7. Collaborative Advocacy • Family vs. Sharegroup vs. Coaltion • Guiding Principle – JFK’s • Focus on what Unites Us not on what Divides Us • Interest sets and policy positions will not always align • Always keep the end, the objective, in mind • The poison of association politics • Understanding Relative Resources • Not everyone brings the same things to the table • Equality of commitment is what’s important • Trust & Respect despite size

8. Collaborative Advocacy • Family • NACS and state associations • (Almost) perfectly aligned interests • Synergistic power: resources + grassroots • Respect • Sharegroups • NACS/API/SIGMA/PMAA/NATSO, GGAC • Common interest spheres • Information sharing, possible position alignment • Back scratching potential • Coalitions • MPC, LUST Taskforce • Common issue • Resource sharing, common position (but only on this issue) • Can be strange bed-fellows

9. Top Advocacy Issues Swipe fees FDA tobacco Menu labeling The Nutrition/Obesity Issue Health care reform Renewable fuel standard/E15+

10. So What Do You Think? Q&A Time

11. NACS Contact Information Henry Armour President & Chief Executive Officer +1.703.518.4282 harmour@nacsonline.com www.nacsonline.com